LEATHER RUBBER

Taranaki Daily News, Volume LIII, Issue 268, 3 April 1911, Page 4

LEATHER RUBBER

A HASTINGS VENTURE. BALANCE-SHEET SHOWS HEAVY LOSS. Napier, March 31. Some months ago a company was floated in Hastings for the manufacture of leather-rubber from worn tyres, boot! and a multitude of other things which arc now regarded as useless. It seemed a good business proposition, and shares sold freely. It has not, however, been all plain sailing, and at a meeting of shareholders to-day the balance-sheet showed a loss of £1584. The meeting was remarkable for some very straight talking.' Mr. R. L. Patterson requested permit* rion to ask Mr. Land, managing direc* tor, a few plain questions. He wanted to know how he reconciled statements he made to him in his office before he went to Melbourne that goods were being produced with 75 per cent, of leather in them and 25 per cent, of rubber, and yet when he (Mr. Land) went to Melbourne to inspect he found! such things were a long way from the truth, and they were told to-day that leather and rubber would not mix. Mr. Land admitted there were serioutf discrepancies between statements made to him in regard to the possibilities of leather-rubber—which statements he unfortunately passed on to others when in* ducing them to take up shares—and the actual facts as revealed to him in Melbourne. Mr. Patterson then wanted to know why such a serious state of affairs had not been laid before shareholders at once. The chairman said Mr. Land had given them all the knowledge he had gained in Melbourne, but it was felt that in view of the fact that the company was already floated and committed to a large expenditure it would he the wisest course to go ahead. Several shareholders spoke, stating that they felt the directors were decidedly to blame in not acquainting them with the changed position. Instead of that, glowing monthly report* had been issued. Tt was ultimately resolved not to wind up until an answer had been received to a letter forwarded to an expert in London.